New York’s cannabis industry faces significant uncertainty as the state’s mandatory seed-to-sale tracking system remains stalled following a major vendor merger. The Office of Cannabis Management has suspended the rollout of its Seed-to-Sale program after BioTrack, the state’s primary tracking software vendor, merged with rival company Metrc in August 2025.
The merger has created widespread disruption across multiple states that rely on these tracking systems. New York’s OCM must now reassess the implications of this transaction for both the regulatory agency and licensed cannabis businesses. Originally, cultivators were required to integrate with BioTrack NY by August 1, 2025, but this deadline has been suspended pending a thorough review of the new vendor landscape.
The BioTrack-Metrc merger has forced New York to suspend its August 2025 seed-to-sale tracking deadline while reassessing vendor implications.
Industry experts estimate the delays could extend six months to a year, creating substantial challenges for market oversight and compliance. The OCM aims to finalize next steps by the end of August 2025, though the timeline remains fluid as officials work with the merged vendor to maintain some semblance of schedule integrity.
The tracking system suspension exposes the legal cannabis market to significant vulnerabilities. Without robust inventory monitoring, untracked, out-of-state cannabis could flood New York’s legal marketplace, undermining regulatory compliance throughout the supply chain. This uncertainty may drive wholesale cannabis prices even lower while hampering enforcement efforts against illicit operations that lack real-time inventory oversight. Growers are particularly concerned about falling wholesale prices as the market becomes increasingly saturated with unregulated products.
Licensed businesses across all sectors face operational challenges during this change period. Cultivators, micro businesses, processors, retailers, and laboratories must prepare for revised integration timelines while operating without clear protocols for future audits. Despite the tracking delays, weekly store revenues continue to exceed $20 million as consumer demand remains strong.
The integration requires real-time electronic platforms with API connectivity to BioTrack NY, but licensees remain uncertain about specific requirements. The current federal classification of cannabis as a Schedule I substance further complicates regulatory compliance for these businesses. Compliance risks remain elevated despite the deadline suspension. New York regulations still mandate that all licensees eventually utilize electronic, real-time inventory tracking systems. Manual tracking methods using paper or spreadsheets are not accepted under current rules.
Once integration deadlines resume, failure to comply could result in fines, license renewal issues, and restrictions on business amendments or approvals. The tracking system delays also complicate broader market modernization efforts, including Cannabis Growers Showcase events and on-site consumption zones.
While the OCM and Attorney General continue cracking down on unlicensed operations, the absence of thorough tracking data limits enforcement capabilities. Permitted laboratories must continue transmitting test data to BioTrack unless instructed otherwise, while conditional licensees face additional burdens for consumer showcases and event-based sales.
The situation highlights the cannabis industry’s dependence on technology infrastructure and the cascading effects when critical systems face disruption.
